LightInTheBox's Q3 revenue fell 1.3% year-on-year, with a net loss of US$6.1 million

Recently, many cross-border sellers, including Anker Innovations, Kuailetong, Tianze Information (Youkeshu), Huading Shares (Tongtuo Technology), Xinghui Shares (Zebao Technology), etc., have released their third-quarter financial reports. Among them, except Anker Innovations, the revenue of the other four companies in the third quarter fell by 20%-70% year-on-year.

Recently, Lazada also released its financial report for the third quarter and the first nine months of this year.

This year, LightInTheBox's revenue has remained relatively stable. According to the financial report, revenue in the third quarter was $98.7 million, compared with $100 million last year, a decrease of 1.3%. Among them, product sales revenue accounted for the majority, $96 million, compared with $95.4 million in the same period last year; service and other revenue was $2.7 million, compared with $4.6 million in the same period of 2020.

In terms of profit, gross profit in the third quarter was US$43.9 million, compared with US$43.1 million in the same period of 2020; gross profit margin in the third quarter was 44.5%, compared with 43.1% in the same period of 2020.

However, the operating loss was US$6.6 million, compared with an operating profit of US$1.6 million in the same period last year; the net loss was US $6.1 million, compared with a net profit of US$7.3 million in the same period last year; and the net loss per American depositary share ( ADS) was US$0.05, compared with a net income of US$0.07 per ADS in the same period last year.

As for the first nine months of this year, revenue was $333 million, up nearly 25.5% year-on-year; net profit was $153.3 million, compared with $116.5 million in the same period of 2020; gross profit margin was 46.0%, compared with 43.9% in the same period of 2020. Net profit was $470 million, compared with $1.65 billion in the same period last year.

He Jian, CEO of LightInTheBox, said that in the post-epidemic era, fluctuations in global consumption capacity and macroeconomic uncertainties have brought multi-dimensional impacts on the cross-border e-commerce industry . A series of challenges have also followed, including rising transportation costs, changes in international marketing policies, pressure from the EU's new VAT policy, and exchange rate fluctuations.

He also stressed that despite the challenging economic environment, the division has been optimizing its product mix, especially in the apparel category which has higher profit margins compared to standard categories such as electronics.

The financial report shows that the third quarter clothing revenue was $61.9 million, compared with $44.4 million last year, a year-on-year increase of 39.6%. Clothing revenue accounted for 64.5% of total product sales in the third quarter, compared with only 46.5% last year.

At the same time, LightInTheBox is also increasing its R&D expenses. According to the financial report, R&D expenses in the first nine months of 2021 were US$15.5 million, compared with US$10.4 million in the same period of 2020.

Q3

Financial Report